To decide whether or not the slope coefficient is large or small,
A) you should analyze the economic importance of a given increase in X.
B) the slope coefficient must be larger than one.
C) the slope coefficient must be statistically significant.
D) you should change the scale of the X variable if the coefficient appears to be too small.
Ans: A) you should analyze the economic importance of a given increase in X.
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In the endogenous growth model with human capital, spending more time on education
A) decreases the growth rate and increases output in the short term. B) decreases the growth rate and decreases output in the short term. C) increases the growth rate and increases output in the short term. D) increases the growth rate and decreases output in the short term.
Which of the following is a major area of disagreement between activists and nonactivists?
a. Activists believe discretionary macroeconomic policy can be applied in a manner that will enhance economic stability. Nonactivists disagree. b. Activists believe monetary policy is more potent than fiscal policy. Nonactivists disagree. c. Activists believe changes in monetary and fiscal policy exert their effects instantaneously. Nonactivists think they work only with a substantial lag. d. Nonactivists think macroeconomic policy is sometimes motivated by the pursuit of political gain. Activists disagree.